This topic contains a solution. Click here to go to the answer

Author Question: Assume that one of two possible outcomes will follow a decision. One outcome yields a 75 payoff and ... (Read 66 times)

sc00by25

  • Hero Member
  • *****
  • Posts: 596
Assume that one of two possible outcomes will follow a decision. One outcome yields a 75 payoff and has a probability of 0.3; the other outcome has a 125 payoff and has a probability of 0.7. In this case the expected value is
 
  A) 85.
  B) 60.
  C) 110.
  D) 35.

Question 2

Suppose your utility function for food (F) and clothing (C) is u(F,C) = F + 4C. If you reduce your clothing consumption by 2 units, how much do you have to increase your food consumption in order to maintain the same utility level?
 
  A) 2 units
  B) 4 units
  C) 6 units
  D) 8 units



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nathang24

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

C

Answer to Question 2

D




sc00by25

  • Member
  • Posts: 596
Reply 2 on: Jul 1, 2018
Excellent


nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library